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McDonald's (MCD) Stock Sinks As Market Gains: What You Should Know
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McDonald's (MCD - Free Report) closed at $275.54 in the latest trading session, marking a -0.79% move from the prior day. This move lagged the S&P 500's daily gain of 0.11%. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.23%.
The the stock of world's biggest hamburger chain has fallen by 5.06% in the past month, lagging the Retail-Wholesale sector's gain of 0.04% and the S&P 500's gain of 1.5%.
The investment community will be closely monitoring the performance of McDonald's in its forthcoming earnings report. The company is scheduled to release its earnings on April 30, 2024. The company's earnings per share (EPS) are projected to be $2.71, reflecting a 3.04% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.18 billion, indicating a 4.79% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.38 per share and revenue of $26.95 billion, which would represent changes of +3.69% and +5.72%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for McDonald's. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. Right now, McDonald's possesses a Zacks Rank of #3 (Hold).
In terms of valuation, McDonald's is presently being traded at a Forward P/E ratio of 22.43. This denotes a premium relative to the industry's average Forward P/E of 22.
Investors should also note that MCD has a PEG ratio of 3 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.81.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 36% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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McDonald's (MCD) Stock Sinks As Market Gains: What You Should Know
McDonald's (MCD - Free Report) closed at $275.54 in the latest trading session, marking a -0.79% move from the prior day. This move lagged the S&P 500's daily gain of 0.11%. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.23%.
The the stock of world's biggest hamburger chain has fallen by 5.06% in the past month, lagging the Retail-Wholesale sector's gain of 0.04% and the S&P 500's gain of 1.5%.
The investment community will be closely monitoring the performance of McDonald's in its forthcoming earnings report. The company is scheduled to release its earnings on April 30, 2024. The company's earnings per share (EPS) are projected to be $2.71, reflecting a 3.04% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.18 billion, indicating a 4.79% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.38 per share and revenue of $26.95 billion, which would represent changes of +3.69% and +5.72%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for McDonald's. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. Right now, McDonald's possesses a Zacks Rank of #3 (Hold).
In terms of valuation, McDonald's is presently being traded at a Forward P/E ratio of 22.43. This denotes a premium relative to the industry's average Forward P/E of 22.
Investors should also note that MCD has a PEG ratio of 3 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.81.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 36% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.